Bjorn Borg AB (BORG) AI Stock Analysis

• Market Cap: €1.54B
• Dividend Yield: 2.45%
• Average Volume (3M): 18.96K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.40
• Revenue Growth: 10.32%
• EPS Growth: 13.49%
• Country: SE
• Employees: 168
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.16
• Shares Outstanding: 25,148,384
• 10 Day Avg. Volume: 12,826
• 30 Day Avg. Volume: 18,961
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €69.04
• Price Target Upside: 12.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: kr69.00 ▲(12.75% Upside)

Bjorn Borg AB's overall stock score reflects strong financial performance with robust revenue growth and profitability. However, the challenges in cash flow generation and neutral technical indicators slightly temper the outlook. The stock's fair valuation and dividend yield provide additional support for a balanced investment perspective.

Bjorn Borg AB Business Overview & Revenue Model

Company Description

Björn Borg AB (publ), together with its subsidiaries, engages in the design, development, production, wholesale, and retail of underwear, sports apparel, footwear, bags, eyewear, and fragrances under the Björn Borg brand. The company operates through Wholesale, Consumer Direct, Distributors, and License segments. It offers underwear for men, women, and kids, as well as pajamas and socks through independent retailers, fashion and sports chains, department stores, Björn Borg stores, and e-commerce sites; and clothing collections for women and men through sports retailers, sports chains, department stores, Björn Borg stores, and e-commerce sites. The company also provides leisure and sports shoes for men and women through independent shoe retailers, shoe and sports chains, department stores, e-tailers, and Björn Borg stores, as well as through www.bjornborg.com; sports bags, backpacks, and suitcases, as well as wallets, gloves, and belts through bag retailers, sports shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites; and backpacks, gym bags, and duffle bags, as well as wallets, gloves, and belts through luggage and sporting goods shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites. Further, it offers spectacle frames and sunglasses through the licensee's distribution organizations, fashion stores, department stores, and Björn Borg stores. The company sells its products in Sweden, the Netherlands, Finland, Germany, Belgium, Norway, Denmark, England, Switzerland, the United States, Slovenia, France, and Canada. As of December 31, 2020, it operated 32 Björn Borg stores, including 29 group owned stores. The company was founded in 1984 and is headquartered in Solna, Sweden.

How the Company Makes Money

Bjorn Borg AB generates revenue primarily through the sale of its branded apparel and underwear. The company's revenue model is based on wholesale distribution to retailers, direct-to-consumer sales through its own branded stores, and online e-commerce platforms. Key revenue streams include the sale of sportswear, underwear, and footwear, with a significant portion of earnings coming from the brand's strong presence in the underwear segment. Additionally, Bjorn Borg AB engages in licensing agreements, where third parties manufacture and sell products under the Björn Borg brand, contributing to the company's revenue through royalties. Strategic partnerships and collaborations with retailers and distributors also play a crucial role in expanding the company's market reach and enhancing its financial performance.

Bjorn Borg AB Financial Statement Overview

Summary

Bjorn Borg AB shows strong revenue growth and profitability, supported by a solid balance sheet with manageable leverage. However, cash flow generation poses a risk, with declining free cash flow growth and low operating cash flow conversion. The company should focus on improving cash flow efficiency to sustain its growth trajectory.

Income Statement

Bjorn Borg AB demonstrates strong revenue growth, with a TTM revenue growth rate of 25.5%, indicating robust demand and market presence. The company maintains healthy profitability with a gross profit margin of 51.4% and a net profit margin of 8.3% for TTM. However, there is a slight decline in gross profit margin compared to the previous year, suggesting potential cost pressures.

Balance Sheet

The company has a solid balance sheet with a manageable debt-to-equity ratio of 0.34, indicating prudent financial leverage. Return on equity is strong at 23.4%, reflecting efficient use of equity capital. However, the equity ratio of 47.6% suggests moderate reliance on debt financing.

Cash Flow

Cash flow generation is a concern, with a significant decline in free cash flow growth of -62.4% TTM. The operating cash flow to net income ratio is low at 0.09, indicating potential challenges in converting profits into cash. Nonetheless, the free cash flow to net income ratio remains healthy at 61.7%, suggesting some resilience in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	989.70M	872.26M	835.17M	796.10M	705.21M
Gross Profit	527.54M	520.65M	294.81M	424.51M	444.43M	369.98M
EBITDA	134.60M	133.98M	136.83M	109.45M	147.38M	64.90M
Net Income	84.81M	72.67M	75.97M	50.87M	86.03M	18.83M
Balance Sheet
Total Assets	745.47M	708.87M	631.52M	653.39M	680.67M	619.02M
Cash, Cash Equivalents and Short-Term Investments	11.26M	8.77M	26.65M	16.03M	96.74M	70.23M
Total Debt	121.94M	58.94M	42.85M	81.65M	135.95M	156.08M
Total Liabilities	396.35M	356.39M	280.71M	328.58M	346.45M	328.00M
Stockholders Equity	355.06M	359.36M	357.12M	331.41M	340.08M	296.31M
Cash Flow
Free Cash Flow	19.76M	61.99M	110.14M	52.18M	103.42M	133.62M
Operating Cash Flow	32.02M	76.04M	121.28M	60.50M	113.93M	142.58M
Investing Cash Flow	-12.26M	-14.05M	-11.14M	-8.32M	-10.51M	-8.96M
Financing Cash Flow	-25.39M	-77.86M	-101.55M	-135.94M	-80.12M	-90.31M

Bjorn Borg AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BORG, the sentiment is Neutral. The current price of 61.2 is below the 20-day moving average (MA) of 62.39, above the 50-day MA of 60.15, and above the 200-day MA of 55.97, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 43.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:BORG.

Bjorn Borg AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BORG	73 Outperform	€1.54B	18.15	25.24%	2.45%	10.32%	13.49%
NELLY	72 Outperform	kr2.38B	18.62	41.57%	―	8.68%	137.29%
RVRC	71 Outperform	kr5.29B	19.05	23.20%	2.49%	4.62%	-6.24%
BOOZT	69 Neutral	kr5.98B	17.13	12.97%	―	2.54%	―
SHOT	64 Neutral	kr19.21B	26.33	27.30%	4.26%	0.01%	17.20%
FOI.B	54 Neutral	kr6.47B	87.17	1.51%	2.53%	-7.64%	-69.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%